Nigerian digital payments startup Paga has acquired Ethiopian’s Apposit for an undisclosed amount. Apposit is an Ethiopian-based software development company with hundreds of clients comprising of government agencies, international organizations and private companies. For over 10 years, Apposit has been responsible for managing Paga’s technology systems. In an article written by Titilola Oludimu, Jay Alarariba Co-founder of Pagatech limited the parent company of Paga mentioned that Apposit is a seed investor in paga and at the initial stage of Paga’s development, there was no talent on ground to build the Paga platform in Nigeria hence the company’s technical team all work from Addis Ababa, the Ethiopian capital city.
The Lagos based startup also aims to launch its payment products in Mexico this year and in Ethiopia imminently. Paga will leverage Apposit which is U.S. incorporated but operates in Addis Ababa to support its expansion into East Africa and Latin America. Tayo Oviosu, Paga’s CEO announced the company’s intent to expand globally while speaking at Disrupt San Francisco in September, 2018, the period when the company brought its total funding to $35 million with a series B funding of $10 million.
With the acquisition, Paga absorbs Apposit’s tech capabilities and team of 63 engineers. The company will direct its boosted capabilities and total workforce of 530 to support expansion.
Paga plans its Mexico launch in 2020, according to Oviosu.
Adam Abate, Apposit’s CEO is now CEO of Paga Ethiopia, where Paga plans to go live as soon as it gains a local banking license. The East African nation of 100 million, with the continent’s seventh largest economy, is bidding to become Africa’s next startup hub, though it still lags the continent’s tech standouts — like Nigeria and Kenya — in startup formation, ISP options and VC.